Hanoi (VNA) - The State Bank of Vietnam(SBV) has flexibly operated monetary policy tools to maintain liquidity for thebanking system, contributing to stabilising and recovering credit growth in thecontext of unpredictable impacts of the COVID-19 pandemic.

The information was announced by the SBV at a press conference on June 21 to reviewthe banking sector’s activities in the first half of 2021.

According to SBV Deputy Governor Dao Minh Tu, thanksto synchronous management solutions, as of June 15, total credit in the economyexpanded 5.1 percent from the end of 2020. The credit growth rate in the sameperiod last year was only 2.26 percent

Attention has been paid to strictly controlling credit for areas withpotentially high risks, andtaking measures to remove difficultiesfacing enterprises and people in accessing bank credit, he said.

Total M2 payment vehicle - one of the tools to measure the level of "pumpingmoney" into the economy from the banking system – in the period increasedby 3.96 percent compared to the end of 2020 and surged 14.27 percent over thesame period last year.  The creditinstitution system maintains smooth liquidity.

The sector has continued to manage interest rates in line with the macro-economic balance,inflation, market movements and the objectives of the monetary policy, contributingto cutting capital costs for people, businesses and the national economy.

A series of measures have been implemented to support borrowers amidst the COVID-19pandemic, helping them restructure cash flows, and revive production andbusiness activities.

As of May 31, credit institutions have rescheduled debt repayments for 257,602 borrowerswith total outstanding loans of over 336.6 trillion VND(14.61 billion USD), exempted or reduced interests for 676,690 customers with total outstanding loansof over 1.2 quadrillion VND, provided new loans with low interest rates totalingover 3.5 quadrillion VND for nearly 481,000 borrowers.

Regarding the form of payment and transaction, Director of the SBV’s Payment Department Pham Tien Dung said non-cash payment activities have beenexpanded in the last six months.

Payment transactions via Internetchannels surged by 65.9 percent in volume and 31.2 percent in value, while paymenttransactions via smart phone jumped by 86.3 percent in volume, and 123.1 percentin value.

Payments via QR Code increased by 95.7 percent in volume, and 181.5percent in value, Dung added.

The SBV said it will continue to keep close watch on the macro-economic andmonetary situation, as well as local and global developments of the pandemic,thus giving appropriate orientations in credit management and structure,towards promoting sustainable economic growth and development.

Notably, the banking sector will tighten control of credit in potentially riskyareas such as real estate, build-operation-transfer(BOT) and build- transfer (BT) projects, and securities, Tu said.

He asked credit institutions to intensify management of credit quality, and implementingmeasures to curb bad debts./.